Hyperscale operators are spending most of their Capex (capital expenditure) for building and expanding huge data centers, according to a Synergy Research Group report.
Google, Microsoft, Amazon, Apple and Facebook — accounting for 70 percent of hyperscale Capex in Q4 2017, are the top five hyperscale spenders. Alibaba, IBM, Oracle, SAP and Tencent are also spending on huge data centers.
The Capex of hyperscale operators reached $22 billion in the fourth quarter and almost $75 billion in 2017, representing 19 percent growth. Hyperscale operators spend over 7 percent of total revenues.
Google, Amazon, Microsoft, Apple and Facebook spent over $13 billion per quarter. Amazon and Facebook have invested heavily in data centers. Alibaba’s Capex has more than doubled in 2017. Baidu, eBay, JD.com, NTT, PayPal, Salesforce, Yahoo Japan and Yahoo/Oath are also spending on data centers.
